HOUSTON, Nov. 16 /PRNewswire-FirstCall/ -- US Dataworks, Inc.
(AMEX:UDW), a leading developer of payment processing solutions,
announced today financial results for its fiscal 2010 second
quarter and six months results ended September 30, 2009. Revenues
for the second quarter ended September 30, 2009 were $2,087,189
compared with revenues of $2,030,737 for the same period a year
ago. The company reported a gain from operations for the second
quarter of $129,813 compared to $162,703 for the second quarter
ended September 30, 2008. Net loss for the second quarter was
$154,750 or $0.00 per share, compared to a net loss of $1,841,695
or $0.06 per share, for the corresponding period in the prior year.
Revenues for the six months ended September 30, 2009 were
$4,095,650 compared with revenues of $4,099,786 for the same period
a year ago. Gain from operations for the six months ended September
30, 2009 was $371,379 compared to $269,850 for the six months ended
September 30, 2008. Net loss for the six months ended September 30,
2009 was $178,663 or $0.01 per share, compared to a net loss of
$1,951,176 or $0.06 per share, for the corresponding period in the
prior year. Charles E. Ramey, Chairman and CEO of US Dataworks
said, "The second quarter financial results signals how our Company
is performing during these difficult economic times. Revenues
increased slightly, by 3%, due to our professional services
contract with a United States government entity, which enabled us
to report positive cash flow on a non-GAAP basis (adjusted EBITDA).
It is relationships like this one that has enabled us to build a
solid foundation and remain fiscally sound. The challenges that we
see in the near term are coming directly from the slowdown in the
economy, which has taken a slight toll on our transactional
revenues. While we await the expected economic recovery, our
Company is currently well-positioned to convert our sales pipeline
into revenue when these potential customers are ready to transition
to electronic solutions from traditional means." A conference call
is scheduled for today, at 11:00 AM ET. Interested parties may
participate in the call by dialing (877) 869-3847; international
callers dial (201) 689-8261, 5-10 minutes prior to 11:00 AM ET. The
conference call will also be available on replay starting at 2:00
p.m. ET on November 16, 2009, and ending on November 23, 2009. For
the replay, please dial (877) 660-6853 (replay account # 269,
replay conference #337135). The access number for the replay for
international callers is (201) 612-7415 (replay account # 269,
replay conference #337135). About US Dataworks, Inc. US Dataworks
is a developer of payment processing solutions, focused on the
financial services market, federal, state and local governments,
billers and retailers. Software developed by US Dataworks is
designed to enable organizations to transition from traditional
paper-based payment and billing processes to electronic solutions
that automate end-to-end processes for accepting and clearing
payments. Additional information about US Dataworks is available at
http://www.usdataworks.com/. Certain statements made in this press
release (other than the historical information contained herein)
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended,
including, but not limited to, statements regarding our expectation
of continued growth, the benefits of our recent restructuring, the
anticipated features and benefits of our new distribution payment
capture solution, our vision for payment processing and our new
solutions' ability to provide a higher return on investment for our
clients. Any forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including, but not limited to, the failure of our new solution to
perform as anticipated, our ability to provide long-term customer
value and agility, our ability to protect our intellectual
property, our position in the marketplace, our ability to develop
and timely introduce products that address market demand, the
impact of alternative technological advances and competitive
products, market fluctuations, our ability to avoid being delisted
from the NYSE Alternext US (formerly the American Stock Exchange),
our ability to repay, refinance or extend the maturity date of our
debt, and other risks detailed from time to time in the SEC reports
of US Dataworks, including its annual report on Form 10-K for the
year ended March 31, 2009 and its quarterly report on Form 10-Q for
the quarter ended September 30, 2009. These forward-looking
statements speak only as of the date hereof. US Dataworks disclaims
any obligation to update these forward-looking statements. - Tables
to Follow - US DATAWORKS, INC. QUARTERLY INCOME STATEMENT DATA
(UNAUDITED) Three Months Ended Six Months Ended September 30,
September 30, 2009 2008 2009 2008 Revenues Software licensing
revenues - - - 30,000 Software transactional revenues, net 518,725
522,755 1,039,968 1,060,504 Software maintenance revenues 208,488
219,608 420,859 448,482 Software service revenues 1,359,976
1,288,374 2,634,823 2,560,800 ATM Equipment revenues - - - -
2,087,189 2,030,737 4,095,650 4,099,786 Discounts on Sales - - Net
Revenue 2,087,189 2,030,737 4,095,650 4,099,786 Cost of sales
670,318 651,401 1,346,689 1,397,580 Gross profit 1,416,871
1,379,336 2,748,961 2,702,206 Operating Expenses Research and
development 217,254 256,152 430,191 517,643 Sales and marketing
237,290 116,859 499,590 311,556 General and administrative 793,496
795,441 1,365,137 1,506,924 Depreciation and amortization 39,018
48,182 82,664 96,233 Goodwill Impairment - - - - 1,287,058
1,216,634 2,377,582 2,432,356 Gain from operations 129,813 162,703
371,379 269,850 Other income (expense) Financing costs (94,979)
(299,692) (118,248) (329,692) Interest expense (55,518)(2,219,703)
(165,119) (2,493,419) Interest expense - related parties (134,066)
(67,922) (266,675) (78,829) Gain/Loss on Derivatives - 580,201 -
621,281 Other income (expense) - 2,719 - 59,633
(284,563)(2,004,397) (550,042) (2,221,026) (Loss) before provision
for income taxes (154,750)(1,841,695) (178,663) (1,951,176)
Provision for income taxes Net (Loss) (154,750)(1,841,695)
(178,663) (1,951,176) Basic and diluted gain/ (loss) per share
(0.00) (0.06) $(0.01) (0.06) Basic and diluted weighted average
(adjusted for reverse stock split 1:5) shares outstanding
32,849,330 32,349,012 32,815,014 32,243,927 US DATAWORKS, INC.
Quarterly Balance Sheet Data For the quarter ended September 30,
2009 (UNAUDITED) ASSETS September 2009 Current assets Cash and cash
equivalents 151,827 Accounts receivable, trade 971,391 Prepaid
expenses and other current assets 377,494 Total current assets
1,500,712 Property and equipment, net 223,119 Goodwill, net
4,020,698 Other assets 32,111 Total assets 5,776,640 LIABILITIES
AND SHAREHOLDERS EQUITY Current liabilities Accounts payable
183,376 Accrued expenses 181,794 Accrued Interest - related Parties
23,656 Deferred revenue, current 285,721 Note payable, current
35,279 Note Payable - Related Party- CRJN, net unamortized discount
of $277,094 3,815,301 Total current liabilities 4,525,127 Total
liabilities 4,525,127 Shareholders' equity Convertible series B
preferred stock, 0001 par 11 Common Stock. 0001 par 3,285
Additional paid in capital 65,502,419 Unissued Common Stock 9
Accumulated deficit (64,254,211) Total shareholders' equity
1,251,513 Total liabilities and shareholders' equity 5,776,640 US
DATAWORKS, INC. INCOME STATEMENT DATA Non GAAP Reconciliations For
the quarters ended September 30, 2009 and 2008 2009 2008
Reconciliation of Adjusted EBITDA (See Note 1) Net Income
$(154,750) $(1,841,694) Depreciation and Amortization (incl. loss
on disposal of assets) 39,018 48,182 Stock Based compensation
expense 77,176 68,966 Other (income) expense 284,563 2,004,397
Adjusted EBITDA (See Note 1) 246,007 279,851 Reconciliation of
EBITDA margin Revenue $2,087,189 $2,030,737 Adjusted EBITDA 246,007
279,851 Margin % 12% 14% Notes: (1) Adjusted EBITDA is a non-GAAP
measure we define as earnings before interest, taxes, depreciation
and amortization, and equity compensation expense. We use Adjusted
EBITDA as a supplemental financial measure to assess (i) our
operating and financial performance without regard to the structure
of our financing or the historical cost basis in our assets and
(ii) our ability to generate cash flow to cover our interest
payments. Adjusted EBITDA has limitations as an analytical tool and
should not be used as a substitute for financial measures presented
in accordance with GAAP, including net income, operating income and
cash flow from operating activities. Such limitations include the
fact that Adjusted EBITDA does not reflect (i) cash requirements to
service interest and principal payments on our debt, (ii) capital
expenditure requirements or (iii) income tax payment requirements
and income tax accruals. In addition, companies in our industry may
define Adjusted EBITDA differently than we do, thereby limiting its
usefulness as a comparative measure. CONTACTS: Charles Ramey, CEO
Donald C. Weinberger US Dataworks, Inc. Wolfe Axelrod Weinberger
Assoc. LLC Tel. (281) 504-8100 Tel. (212) 370-4500 Fax (212)
370-4505 DATASOURCE: US Dataworks, Inc. CONTACT: Charles Ramey, CEO
of US Dataworks, Inc., +1-281-504-8100; or Donald C. Weinberger of
Wolfe Axelrod Weinberger Assoc. LLC, +1-212-370-4500, Fax,
+1-212-370-4505, for US Dataworks, Inc. Web Site:
http://www.usdataworks.com/
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